The Australian share market returned to form on Wednesday after two days of heavy declines.
While a number of shares are climbing higher today, three that reached 52-week highs or better are listed below. Is it too late to buy these high-flying shares?
The OceanaGold Corp (ASX: OGC) share price hit a 52-week high of $4.28 on Wednesday. The gold miner's shares have been flying higher this week after a spike in the gold price. Demand for the precious metal was particularly strong in Europe after the Italian government released its budget for 2019. That budget will see both spending and its deficit increase significantly next year, leading to fears that Italy could be on the verge of a Greece-style financial crisis. One broker that appears to believe this gold miner's shares have now peaked is Deutsche Bank. A note out of the broker reveals that its analysts have downgraded its shares to a hold rating from buy on valuation grounds.
The OFX Group Ltd (ASX: OFX) share price surged to a two-year high of $2.47 today. Investors have been fighting to get hold of the international money transfer company's shares since the release of a decent full year result in May. That result saw OFX report a 4.6% increase in fee revenue to $109.9 million and a 7.5% lift in EBITDA to $29.4 million. In addition to this, news that the ACCC has launched an inquiry into the high cost of foreign exchange services in the country appears to have gone down well with investors. They may be betting that the findings push consumers away from using the banks for foreign exchange and towards low cost providers like OFX.
The Vocus Group Ltd (ASX: VOC) share price reached a 52-week high of $3.37 this morning before ending the day in the red. The TPG-Vodafone merger has been the catalyst for the Vocus share price rise over the last couple of months. Investors are expecting the merger to reduce price competition and improve margins. While I'm staying away from Vocus for the time being, analysts at Citi think its shares are a buy. Last week the broker slapped a buy rating and $3.65 price target on its shares. This could mean there's still a fair bit more left in the tank for its shares in the coming months.
